Title: Gold Prices Steady as Investors Bet on Rate Cuts; Powell's Speech in Focus | Market Update
Investing.com-- Gold prices held steady in Asian trade amid record highs, driven by expectations of lower U.S. interest rates. The weaker dollar and increased flows into gold have also boosted broader metal prices, although gains have slowed due to market risk-off sentiment.
At $2,515.44 an ounce, gold rose 0.1%, while December futures climbed to $2,553.35 an ounce. Spot prices hit a high of $2,531.72 an ounce on Tuesday.
Investors are banking on a rate cut by the Federal Reserve in September, with uncertainty over whether it will be a 25 or 50 basis point reduction. Fed Chair Powell's upcoming speech at the Jackson Hole Symposium on Friday will provide further insight, although no explicit rate cut forecasts are expected.
Lower interest rates are favorable for gold as they reduce the cost of holding non-yielding assets. The recent dollar weakness has also contributed to gold's gains, with other precious metals seeing marginal increases.
In the industrial metals sector, copper prices edged up on signs of improved demand in China, the top importer. Benchmark copper on the London Metal Exchange rose 0.4% to $9,222.50 a ton, while one-month futures climbed to $2,554.10 a pound.
Although Chinese copper exports fell in July, indicating stronger domestic demand, persistent economic challenges in China have limited copper's overall gains.
Analysis: The current market conditions suggest that investors are turning to gold and other metals as safe-haven assets amid uncertainty surrounding interest rates and economic recovery. As the Fed considers rate cuts and China's demand for industrial metals fluctuates, it is essential for investors to monitor these developments to make informed decisions about their portfolios.